XML 82 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Note 7 – Income Taxes Income from continuing operations before income taxes was generated in the following jurisdictions. Domestic income excludes $30,752 of intercompany dividend income taxable in the US and eliminated in consolidation.
|  | For the years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Domestic |  | $ | (2,024 | ) |  | $ | 1,492 |  |  | $ | 6,220 |
Foreign |  |  | 16,138 |  |  |  | 20,205 |  |  |  | 19,588 |
Total |  | $ | 14,114 |  |  | $ | 21,697 |  |  | $ | 25,808 |
The provision for income taxes consists of the following:
|  | For the years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 11 |  |  | $ | — |  |  | $ | 244 |
State |  |  | 22 |  |  |  | 1 |  |  |  | 443 |
Foreign |  |  | 3,121 |  |  |  | 4,402 |  |  |  | 4,933 |
Total current |  |  | 3,154 |  |  |  | 4,403 |  |  |  | 5,620 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 338 |  |  |  | 866 |  |  |  | (4,543 | )
State |  |  | (289 | ) |  |  | 93 |  |  |  | (285 | )
Foreign |  |  | (56 | ) |  |  | 106 |  |  |  | 765 |
Total deferred |  |  | (7 | ) |  |  | 1,065 |  |  |  | (4,063 | )
Total |  | $ | 3,147 |  |  | $ | 5,468 |  |  | $ | 1,557 |
The U.S. federal corporate tax rate varies with taxable income. In 2013, inclusion of the intercompany dividend increased our statutory rate to 35% from 34% in 2012 and 2011. The differences between the income tax provisions computed using the statutory federal income tax rate and the provisions for income taxes reported in the consolidated statements of operations are as follows:
|  | For the years ended December 31, |
|  | 2013 |  |  | 2012 |  |  | 2011 |
Expected tax at statutory rate |  | $ | 4,940 |  |  | $ | 7,377 |  |  | $ | 8,775 |
Foreign taxes at other rates |  |  | (2,520 | ) |  |  | (2,513 | ) |  |  | (1,758 | )
US dividend income, net of foreign tax credit |  |  | 212 |  |  |  | — |  |  |  | — |
State income taxes, net of federal benefit |  |  | (310 | ) |  |  | 53 |  |  |  | — |
Change in valuation allowance due to: |  |  |  |  |  |  |  |  |  |  |  |
NOL valuation reserve adjustments |  |  | — |  |  |  | — |  |  |  | (1,639 | )
Utilization of NOL carryforwards |  |  | — |  |  |  | (43 | ) |  |  | (4,873 | )
Generation of NOL carryforwards |  |  | 6 |  |  |  | — |  |  |  | 134 |
Disallowed expenses and other |  |  | 819 |  |  |  | 594 |  |  |  | 918 |
Total |  | $ | 3,147 |  |  | $ | 5,468 |  |  | $ | 1,557 |
Current deferred tax assets and long-term deferred tax liabilities are presented as separate line items in the balance sheet. Long-term deferred tax assets of $6,334 and $2,565 as of December 31, 2013 and 2012, respectively, are included in other assets, net of accumulated amortization. Current deferred tax liabilities were $726 in 2013 and $543 in 2012 and are included in other accrued liabilities. Deferred income tax balances are comprised of the following:
|  | As of December 31, |
|  | 2013 |  |  | 2012 |
Deferred tax assets: |  |  |  |  |  |  |  |
U.S. foreign tax credit |  | $ | 5,058 |  |  | $ | — |
U.S. net operating loss carryforwards |  |  | — |  |  |  | 859 |
Stock and long-term compensation plans |  |  | 1,318 |  |  |  | 2,410 |
Foreign NOL & other carryforwards |  |  | 2,930 |  |  |  | 2,675 |
US state income taxes |  |  | 574 |  |  |  | 285 |
US alternative minimum tax |  |  | 395 |  |  |  | 456 |
Deferred revenue |  |  | 965 |  |  |  | 255 |
Reserve for uncertain tax issues |  |  | (560 | ) |  |  | (560 | )
US tax on unremitted foreign earnings |  |  | (380 | ) |  |  | — |
Accrued expenses and other |  |  | 67 |  |  |  | 183 |
Total gross deferred tax assets |  |  | 10,367 |  |  |  | 6,563 |
Less: Valuation allowance |  |  | (2,399 | ) |  |  | (2,284 | )
Net deferred income tax assets |  | $ | 7,968 |  |  | $ | 4,279 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Swiss tax allowances |  | $ | 726 |  |  | $ | 543 |
Intangible assets |  |  | 321 |  |  |  | 141 |
Deferred tax liabilities |  | $ | 1,047 |  |  | $ | 684 |
Prior to 2013, we considered our unremitted foreign earnings permanently invested and, consequently, did not provide deferred incremental U.S. taxes on them. In the fourth quarter of 2013, we determined that the earnings of certain subsidiaries are available for distribution. In December 2013, a foreign subsidiary paid a dividend of €22,600 (approximately $30,752 at an exchange rate of 1.36 U.S. Dollars per Euro). At December 31, 2013, unremitted foreign earnings available for distribution at current exchange rates are $46,012. We have provided a deferred tax liability of $380 for the incremental U.S. tax to be paid upon remittance as dividends. The net effect on 2013 tax expense for the dividend policy change was $212. The earnings of certain subsidiaries will remain permanently invested. At December 31, 2013, total unremitted foreign earnings considered permanently invested at current exchange rates are $50,398. We utilized U.S. net operating loss (NOL) carryforwards of $10,586 in 2013 including $9,741 related to U.S. tax deductions for employee stock option gains. The stock option tax benefit of $3,318 was credited to additional paid-in capital. Foreign tax credit carryforwards were $5,058 at December 31, 2013. Foreign tax credits of $944 expire in 2015 and the remaining $4,114 expire in 2023. We have not provided a valuation reserve for the foreign tax credits as we believe it is more likely than not they will be realized. At December 31, 2013, we had foreign NOL carryforwards of $5,093 and other foreign deductible carryforwards of $3,898. The foreign NOL carryforwards have no expiration dates and the other deductible carryforwards expire from 2016 to 2020. At December 31, 2013, we had a valuation allowance of $2,399 for certain foreign deferred tax assets. The net change in the valuation allowance for the years ended December 31, 2013, 2012, and 2011 were increases of $115 and $196 and a decrease of $5,625, respectively. This valuation allowance will be reviewed on a regular basis and adjustments made as appropriate. In addition to the utilization of NOLs as noted above, the change in the valuation allowance also reflects other factors including, but not limited to, changes in our assessment of our ability to use existing NOLs and other deduction carryforwards, changes in currency rates, and adjustments to reflect differences between the actual returns filed and the estimates we made at financial reporting dates. The company expects to generate adequate taxable income to realize deferred tax assets in foreign jurisdictions where no valuation reserve exists. We had no accrued interest or penalties for income tax liabilities at December 31, 2013. Our policy is to record interest expense and penalties on income taxes as income tax expense. ASC 740-10, Accounting for Uncertainty in Income Taxes sets a “more likely than not” criterion for recognizing the tax benefit of uncertain tax positions. We have identified one such exposure concerning cost allocations related to the implementation of our worldwide strategy related to the ownership of our intellectual property for which we had a reserve of $560 at December 31, 2013 and 2012. The reserve is an offset to our U.S. deferred tax asset. Our primary tax jurisdictions and the earliest tax year subject to audit are presented in the following table.
Australia |  |  | 2005 |
Austria |  |  | 2007 |
Belgium |  |  | 2006 |
Netherlands |  |  | 2008 |
Singapore |  |  | 2007 |
Switzerland |  |  | 2011 |
United States |  |  | 2005 |

X
- Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration